Crude climbs as doubts grow around US-Iran ceasefire
The WTI prompt-month contract rose $3.51 to $101.58/Bbl on Tuesday morning (7:30 AM CT)
Oil futures moved higher after President Trump questioned the durability of the ceasefire with Iran and rejected Tehran’s latest proposal, keeping uncertainty around the Strait of Hormuz elevated
According to Axios, Trump met with his national security team to discuss the conflict, including the possibility of renewed military operations
The president is also scheduled to depart for China on Wednesday, with analysts suggesting any major military action against Iran would likely be delayed until after his return
The Cal 2027 strip moved above $76/Bbl, reflecting growing expectations that disruptions tied to the US-Iran conflict could extend beyond 2026, with Trump’s comments that the US does not need to “rush anything” reinforcing the market’s view of a potentially prolonged standoff
Natural gas prompt gives back recent gains as late may weather forecast cools
Natural gas is down -1.7c to $2.893/MMBtu (As of 07:30 AM CDT)
Residual HDDs persist for a couple more days before dropping off by May 15
CDDs peak in this forecast range early next week around 6 before tapering back to the 3 CDD range (Criterion)
L48 average storage week temperatures are expected to average 64.1
Despite the mild shoulder season, the overall potential volatility of markets remains
US natural gas supply and demand have grown >40% over the last decade, while working capacity of storage has stayed mostly flat (Expand)
The EIA will release its annual Underground Natural Gas Working Storage Capacity this month
Enbridge made FID on 25 Bcf expansion of Tres Palacios storage system in Texas
Enbridge will add 3 new wells to the existing Tres Palacios site to add storage in 3 stages between 2028 and 2030
The storage system will support rising demand from LNG and power generation along the Gulf Coast
The company now has almost 50 Bcf of storage capacity under development along the Gulf Coast
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